Legislative Update – Victory For Small Businesses – The New Parent Leave Act Vetoed By Governor Brown

On Friday, September 30, 2016 – the deadline for Governor Jerry Brown to sign or veto all bills passed by the Legislature in 2016, in time to take effect in 2017 – Governor Brown vetoed SB 654.  The bill would have expanded the California Family Rights Act (“CFRA”) to include smaller businesses (with between 20 and 49 employees) in limited circumstances.  Specifically, the bill would have provided the parents of newborn or adopted children up to six (6) weeks of unpaid, yet protected, parental leave.  The bill had sparked significant concern given the crippling effect it would have had on small businesses.

In his veto message, Governor Brown lamented that although he recognized the importance of parental bonding with a new child, he was concerned about the impact the bill would have on small businesses, and the potential liability that would result.  Governor Brown suggested that the author of the bill pursue a less drastic version of the bill to decrease the concerns he had regarding employer liability.